Debt Collection Statute Of Limitations What You Should Know!

Learn how to check your states debt collection statute of limitations and when to send a debt validation letter to stop debt collection agencies.

If you are trying to find solutions, you may have heard about barred debts and how to stop collectors by negotiating with creditors directly using a debt settlement letter or validation letter if the collection statute of limitations has not expired for your state, Perhaps you have heard these terms and you are wondering what they really mean.

It is important that you know about this and other important terms and information surrounding collection of bills as you are trying to get debtfree. Here is a closer look at this topic plus several other important things to keep in mind.

Debt Collection Statute Of Limitations Tips And Guidelines!

If you're not sure what this is, it is simply talking about the maximum amount of time that any collector has in order to sue you to try and collect. Once this period is over and it expires, they no longer have a right to take your money.

They can simply ask you for that money, but legally you don't really have to pay. In some cases you may choose to come to a settlement with the collectors by negotiating with creditors, but you also can send letters to collectors telling them to cease their communication. Then these accounts will eventually be eliminated from your record.

Time Barred Debt Why This is Important

Not sure why debt collection statute of limitations is so important? Well, these time limits are important when it comes to repairing your credit and eliminating your bills.

Time barred debt, many people think that this time period is the same as the reporting period, but usually you'll find that the debt collection statute of limitations is shorter than the length of time these accounts can be reported on your credit report.

Just remember that these spans can vary, depending on the state where you owe the account. Usually this time period starts when you first missed a payment or defaulted on the account.

Debt Validation Letter, The Importance of Understanding Your Rights

It is so important that you understand your rights when you are working to eliminate your bills. For example, you have the right to get a debt validation letter from companies that say that you owe them money.

This way you have proof that you actually owe the debts. It is not unheard of for companies to try to collect on debts that really never existed. If they cannot prove those accounts with a validation letter, then you are not obligated legally to pay on the debts.

Another thing you need to understand is how important the collection statute of limitations actually is. You see, collection agencies may try to keep working to collect debts, even after that time period has passed.

If you are not aware of your rights, then you may go ahead and pay when you may not legally be obligated to. Another important thing to remember is that if you ever do pay off debts for a lower amount of money, always get a debt settlement legal letter back from the company.

This way you can prove that you do not owe any more money if they try to come after you later for the rest of those debts.